“To protect those jobs at Springfield, along with the 80 jobs created at Dorset Road One, it was felt it was a good move, on behalf of the group company to no longer just be a supplier of components, but to build the engines complete under a manufacturing supply agreement.”

Lister Petter had operated in the town for over 140 years and at its height employed 5,000 people in the area.

None of the previous board of directors of Lister Petter are staying on at the new manufacturing entity.

Unite union leader Trevor Hall said he has had several discussion with the new owner and had been guaranteed the terms of employment would stay the same for staff.

“I am pleased the company has been saved and I hope it can go forward and prosper,” he said.

“I am being assured that the future is secure. I have to take that on face value and we will work with the new owners.”

Dursley Cllr and leader of Stroud District Council, Geoff Wheeler, said it sounded like great news.

“It would be excellent to see as many jobs as possible saved and hopefully for the long term,” he said.

“We’re awaiting official confirmation from the administrator on what has been decided, but it would certainly be a tremendous relief for the remaining employees of Lister Petter and their families if its future is assured.”